IRS to Get Chance to Sell Turnaround Story

The House Ways and Means Committee announced a hearing next week on plans for restoring confidence in the embattled Internal Revenue Service, which has been widely criticized for targeting of conservative tea-party groups seeking tax-exempt status.

The hearing on Thursday could give the IRS an opportunity to begin turning a corner in the controversy. But it could become another flashpoint, if Republicans conclude the agency isn’t cooperating sufficiently with their investigation, or is trying to sweep problems under the rug.

Daniel Werfel, named as the tax agency’s interim leader last month after acting commissioner Steven Miller was ousted, will be the hearing’s sole witness. Mr. Werfel has been conducting a 30-day review at the agency. He is expected to report steps he is taking to fix the problems that led to targeting of conservative tea-party groups seeking tax-exempt status.

Already Mr. Werfel has made several high-profile personnel moves, including placing at least two high-ranking officials in the exempt-organizations division on administrative leave.

Ways and Means Chairman Dave Camp (R., Mich.) said in a statement: “While the Committee continues a methodical investigation that includes interviewing IRS officials, reviewing internal IRS documents, and talking to those who were targeted, it is also important that we hear from IRS leadership about what immediate steps the agency has undertaken to address these actions. The hearing will ensure that we have the IRS’s perspective as Congress considers additional actions that are necessary to address both this broken agency and the broken tax code the agency used as a means to target and intimidate Americans based on their political beliefs.”

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